Iridium Credit raises $3M to help lenders verify unpaid invoices
What's the deal? Iridium CreditDealroom has a profile for this one. Try Dealroom →, a New York-based startup that builds AI software to help financing companies check unpaid invoices, has raised $3 million in growth funding. Field VenturesDealroom has a profile for this one. Try Dealroom → and MGVDealroom has a profile for this one. Try Dealroom → co-led the round, which brings the company's total funding to $3.5 million since its 2025 founding. Earlier backers include Entrepreneurs First and Transpose PlatformDealroom has a profile for this one. Try Dealroom →.
What does it do? Iridium's software verifies that invoices are legitimate before a financing company buys them. It compares invoices against supporting documents, contacts customers to confirm what they owe, then tracks payment and matches incoming money to the right bill. Iridium supplies the software only — it does not buy invoices or lend itself.
Why it matters: Iridium's customers include factoring companies, which give businesses cash upfront by buying unpaid invoices at a discount, then collect from the customer that owes the money. The approach fills a cash flow gap for staffing agencies, manufacturers, and transportation firms that are owed money but need funds immediately.
The cost problem: Checking an invoice is laborious — a financing company must confirm the work was done, the bill is real, and the customer owes the amount claimed. Manual checks cost about $22 in staff time and verify only about one in five invoices, chief executive officer Anthony Eden estimates. Those costs make smaller invoices too expensive to finance.
What's the endgame? Iridium aims to automate verification so lenders can serve more businesses more cheaply. "We use AI to automate that entire process, so the lending companies that offer these types of loans can do it more securely, more cheaply, and offer it to more businesses," Eden said.
Why now? Factoring costs more than a bank line of credit but remains an option for firms that cannot get one. "For the rest of the 90-plus percent of businesses that can't get a bank line of credit, then you default to something else," Eden said, noting that US cash advances can carry APRs above 400%.
The signal: Eden, who previously helped build a payments platform at Morgan Stanley, founded Iridium in late 2025 with chief technology officer Preesha Gehlot. Their bet is that cheaper verification can widen access to invoice financing for the many businesses shut out of traditional credit.
Read more: thisweekinfintech.com
Image credit: Generated with Gemini
